What are regulations on late payment interest in Vietnam?

What are regulations on handling of late tax payment in Vietnam?

Based on the provisions of Clause 1, Article 59 of the Law on Tax Administration 2019, cases of handling late tax payments are as follows:

- Cases required to pay late payment interest include:

+ Taxpayers pay taxes later than the regulated deadline, the extended tax payment deadline, the deadline stated in the tax authority's notice, or the deadline in the tax determination decision or handling decision from the tax authority;

+ Taxpayers who supplement their tax declaration dossier resulting in an increase in the payable tax amount or the tax authority, or a competent state agency detects under-declared payable tax amounts shall pay late payment interest on the increased tax amount from the day following the last date of the tax payment deadline of the tax period with errors or from the expiry date of the original customs declaration;

+ Taxpayers supplement their tax declaration dossier resulting in a reduction of the refunded tax amount or the tax authority, or a competent state agency detects that the refund tax amount is less than the refunded amount, then late payment interest will be charged on the amount to be recovered from the date of receipt of the refund from the state budget;

+ In the case of gradual settlement of tax debt as stipulated in Clause 5, Article 124 of the Law on Tax Administration 2019;

+ Cases not subject to administrative penalties for tax administration violations due to the expiration of the penalty time limit but are subject to tax arrears as stipulated in Clause 3, Article 137 of the Law on Tax Administration 2019;

+ Cases not subject to administrative penalties for tax administration violations for acts stipulated in Clauses 3 and 4, Article 142 of the Law on Tax Administration 2019;

+ Agencies and organizations authorized by the tax authority to collect taxes that delay transferring tax money, late payment interest, and fines of taxpayers to the state budget must pay late payment interest on the delayed amount as stipulated.

What are regulations on late payment interest in Vietnam? (Image from the Internet)

What are regulations on late payment interest in Vietnam?

Based on the provisions of Clause 2, Article 59 of the Law on Tax Administration 2019 regarding determining the day of calculating tax payment as follows:

Handling of late tax payments

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2. The late payment interest rate and duration for calculating late payment interest are stipulated as follows:

a) The late payment interest rate is 0.03% per day calculated on the amount of late paid tax;

b) The time for calculating late payment interest is continuous from the day following the day the late payment interest arises, as stipulated in Clause 1 of this Article, to the day immediately before the day the tax debt, recovered tax refund, increased tax amount, determined tax amount, or late transferred tax has been paid into the state budget.

Thus, based on the regulations, it can be seen that the late payment interest is calculated at 0.03% per day on the amount of late paid tax.

When is the taxpayer not subject to late tax payment interest in Vietnam?

According to the provisions of Clause 5, Article 59 of the Law on Tax Administration 2019, the regulations are as follows:

Handling of late tax payments

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5. Late tax payment interest is not calculated in the following cases:

a) The taxpayer providing goods and services paid by the state budget, including subcontractors as stipulated in the contract signed with the investor and directly paid by the investor but has not been paid, is not required to pay late payment interest.

The tax debt not subject to late payment calculation is the total tax debt owed to the state budget by the taxpayer but does not exceed the amount unpaid by the state budget;

b) The cases stipulated at point b, Clause 4, Article 55 of this Law do not incur late payment interest during the time waiting for analysis results, verification; while there is no official price; during the time when the actual payment amount, adjustment amounts added to the customs value have not been determined.

Thus, taxpayers are not subject to late tax payment interest in the following cases:

- The taxpayer providing goods and services paid by the state budget, including subcontractors as stipulated in the contract signed with the investor and directly paid by the investor but has not been paid, is not required to pay late payment interest.

The tax debt not subject to late payment calculation is the total tax debt owed to the state budget by the taxpayer but does not exceed the amount unpaid by the state budget;

- The cases stipulated at point b, Clause 4, Article 55 of the Law on Tax Administration 2019 do not incur late payment interest during the time waiting for analysis results, verification; while there is no official price; during the time when the actual payment amount, adjustment amounts added to the customs value have not been determined.